One of the most visible jobs of a liquidator is to claw back payments made to creditors under the voidable transactions regime. The regime operates by allowing liquidators to recover payments made by an insolvent company to its creditors within the two years prior to the company's liquidation, if those payments resulted in the creditor receiving more than it would have in the company's liquidation. The regime has always struggled to balance the policy goals of equal (pari passu) sharing between creditors in a liquidation and the need for certainty in commercial transactions. Join us for a Hothouse where we will examine the interesting recent developments regarding the operation and application of the voidable transactions regime including:
- the operation of the good faith defence after the Supreme Court's recent decision regarding the "gave value" element of the defence
- whether liquidators should be able to choose the point of "peak indebtedness" as the starting point of the continuing business relationship and possible implications of the upcoming Court of Appeal on this point, and
- other recent case law developments relating to the voidable transactions regime.
This HotHouse will examine the impact that these cases will have on the market and consider the lessons for creditors and liquidators that arise from these developments. This session will provide you with one CPD hour.